...flat tax levied in Florida is a PROPORTIONAL tax because it is based on gross income of corporations. This tax is levied at the identical 5.5% rate across all levels of gross income on corporations registered or doing business in Florida, so by definition, the tax is proportional. b. Florida’s 6% sales tax is REGRESSIVE since all consumers, regardless of earnings are required to pay the same tax rate. There are arguments that consider the sales tax proportional because the same rate is evenly applied across low-, middle-, and high-income taxpayers. However application of the sales tax is regressive because the percentage of tax paid decreases with respect to total income as income levels increase. Lower-income tax payers pay the same dollar amount for particular goods as higher-income individuals, but at lower-income levels the tax represents a greater proportion of overall income and therefore the tax is actually, in application, regressive. Sales taxes on essentials like food, clothing, and housing also take up a larger percentage of lower-income individuals budget. The argument for proportionality of the tax is that higher-income individuals actually purchase more goods and more expensive goods. Because sales taxes in general do not take into account the economic or personal circumstances of the purchaser, and that the tax is not a personal income levy, both low- and highincome individuals will pay the same tax rate on the purchase of items. The sales tax is justifiably ...
Words: 4438 - Pages: 18
...restaurants, coffee companies, and consumers are worried about the Government proposal that might affect the companies’ business and the consumer’s freedom to choose any type of drink they want. The proposal prohibits the sale of any cup or bottle of sweetened drink larger than 16 fluid ounces. There are many reasons for restricting the sale and quantity of sodas in New York and this regulation is really just a wise decision that made public health one of the priorities in the City of New York. One reason we should ban selling the popular sugary drinks is that the consumption of big amounts cause obesity and other health diseases. Research has demonstrated a direct relationship between consumption of sugary drinks and an increase in the risk of overweight and obesity, which in turn promote many health conditions including: hypertension, coronary heart disease, type 2 diabetes, stroke, gall bladder disease, osteoarthritis, sleep apnea, respiratory problems, some cancers (endometrial, breast, and colon), and dyslipidemia (CDC, 2006). Although one of the national health objectives is to reduce the prevalence of obesity among adults, current data indicate that the circumstances are worsening (MMWR, 2006). This is particularly problematic because most of the daily calories come from sodas, energy drinks, sports drinks, fruit drinks and sweetened bottled waters. These beverages don’t provide any nutritional value to a regular diet. In fact, the soda contributes with no protein, fat...
Words: 1397 - Pages: 6
...in the quantity demanded of a certain good divided by the percentage change in the price of that certain good (Hubbard/O’Brien. Pg 169). A specific tax is a tax that’s amount levied does not change with the value of a good but with the amount or volume of a good purchased. Barnes & Noble books: Elastic Coca-Cola: Elastic Cigarettes: Inelastic Beer: Inelastic Gasoline: Inelastic The reasoning for classifying the price elasticity demand for goods in which there are few substitutes, or an abundance of. A product that has a low substitute such as beer, cigarettes and gasoline, are price inelastic. Inelastic goods are less responsive to change in price therefore the government can get more revenue from the taxes. Particular brands of products, such as Coca-Cola or Barnes & Noble books, are priced elastic because the demand for books and soda from a particular retailer is typically higher. Elasticity helps a company and the government understands if what it's doing produces result or not. * If implications of classifications on tax revenue collection was to increases or decrease. The weight of taxes can affect how a product will do on the market. This is important as it helps the organization decide on the best course of action. Governments also can indicate who will hold the responsibility to pay the tax. For example, a firm decided to reduces a price, hoping to raise the quantity demanded of its product. If the customers are not elastic, or not receptive...
Words: 627 - Pages: 3
...drinking unhealthily. Things like candy, soda, and potato chips are big factors in people not eating healthy foods and becoming overweight. Because of this, the government is thinking about implementing a tax on these "non-essential" foods. This would cause the price of these foods to increase and hopefully result in people buying less of them. I agree, the United States government should implement a junk food tax. Some people could argue that this tax wouldn't make a difference as far as reducing the amount of junk food sold. But there is evidence that shows it could be successful. First off, there...
Words: 1118 - Pages: 5
...Consider the demand for a product defined to be “soda pop.” 1. What would be included in the definition of this product? All of the different brands of carbonated soft drinks produced by the various bottlers, including Coke Classic, 7 UP, Dr. Pepper, Mountain Dew, Dad’s Root Beer, Ginger Ale, etc. 2. What geographic area would the market area typically considered be? The geographic area is the region within which the product is bought and sold and the area within which the price and quantity of the product bought and sold are being determined. It is usually considered to be the entire U.S. 3. How would quantity demanded and the price of this product be defined? The quantity demanded is defined as the total number of gallons of all brands of soft drinks that all the households in the market area are willing and able to purchase during some period of time, c.f., week, at some (average) price of soda pop. The price of soda pop, which is what would be on the vertical axis of a demand curve diagram, is the average price of all the different brands produced by all the different bottlers for say a 12 ou. serving. The price of the product would be thought of as the average price of a 12 ou. serving for all the brands included in the definition of the product. 4. How is the demand for this product defined? The demand for soda pop is the relationship between all the possible (average) prices of soda pop and the corresponding amount that all households...
Words: 1724 - Pages: 7
...non-cola drinks, and 13 of their 14 leading brands are ranked in the top two of its flavor categories. The DPS market more than 50 brands of carbonated soft drinks, juices, teas, mixers, water, and other premium beverages. Dr Pepper Snapple group include: 7UP, A&W, Canada Dry, Clamato, Crush, Hawaiian Punch, Mott's, Mr. & Mrs. T mixers, Penafiel, Rose's, Schweppes, Squirt and Sunkist soda. We are able to thank DPS for inventing the first carbonated drink. In 1783, Jean Jacob Schweppes created the world’s first carbonated mineral water. Schweppes’s was the original inventor of this new product, shared his invention with a young pharmacist in Waco, Texas, named Charles Alderton. They both invented Dr Pepper in 1885. The fans of this new product would ask the clerk for a “Waco,” that name shortly changed and was named after Dr. Charles Pepper, a friend of the pharmacist. That is where the name “Dr Pepper” originated. Snapple came around nearly 100 years later; this invention was brought about from three New-York-area health food storeowners. The three owners created a unique apple soda and named it...
Words: 2880 - Pages: 12
...http://www.academia.edu/9365531/STRATEGIC_MANAGEMENT_FINAL_PAPER_PEPSICO_CASE_STUDY_ANALYSIS_LECTURER http://aboutpepsico.blogspot.com/2010/01/market-segmentation-of-pepsi.html http://www.pepsico.eu/company/worldwide-code-of-conduct.html http://www.timebase.com.au/news/2014/AT687-article.html http://www.disabled-world.com/disability/legal/pepsi-disability-discrimination.php https://www.linkedin.com/in/danielplopez http://en.wikipedia.org/wiki/Minimum_wage_Pepsi http://www.pepsico.com/company/policies http://thehill.com/business-a-lobbying/69561-coke-pepsi-step-up-spending-after-being-targeted-by-tax Pepsi Demographic: Aging Population: First of all the company considers every one young in the market because they consider 5 year old boy as young and 70 year old man as young because they think that no one in the world consider himself as an aged person but the company in some case focuses their market and segments their market up to the age from 5 years to age 45, because people above 45 are hesitant of drinking Pepsi due to its coolness and its sugar factors. People in between the age 5 to 45 are usually attracted towards the drink Pepsi due to its flavor and reputation in the market. The company also made area wise segmentation and usually moves towards college, cinemas, restaurants, hotels, where the strength of young people are greater. The company also focuses towards students of colleges and schools. Geographic distribution of...
Words: 1310 - Pages: 6
...Structure and Firm Strategy “Six months from today I have decided to start my own online service selling cookbooks. Presently, I am working full time with an annual salary of fifty thousand dollars a year. At the time of startup for selling the cookbook I will have made twenty five thousand dollars in the first six months of the year. The twenty five thousand dollars that I give up by moving on to my internet business of selling cookbooks is a nonmonetary opportunity cost. “The opportunity cost of any activity is the highest-valued alternative that must be given up to engage in that activity” (Hubbard pg. 356; 2012). This trade off of not gaining my twenty five thousand for working the second part of the year is a cost I will encounter and must be added to my total fixed cost. In other words, the twenty five thousand dollars I loose from leaving my job in order run my own business becomes an implicit fixed cost for the first year of running my business giving me a total of 41,000 total fixed costs. In regards to pricing my cookbooks the retail price for the cookbooks will be at $30.00 and the average price of the cookbook will be $20.00. The change in the difference of the retail price to the average price is my marginal price. My marginal price is ten dollars. In other words, marginal profit = selling price ($30) – total variable cost of one unit (average of $20). In order to figure my demand curve for the month and assume that I have 40,000 cookbooks in inventory I would...
Words: 3507 - Pages: 15
...code of ethics laws to live by and operate upon. This paper will illustrate the code of ethics of Coke the industry leaders and two of its partners/competitors PepsiCo and Dr. Pepper/Snapple Co. and the similarities of their ethics code for operations as American multination companies. Coca-Cola Company or Coke is the largest distributor of soft drinks in the world. A successful businesses like Coke and other large corporations set a strict code of ethics laws to live by and operate upon. A brief look at the industries three largest leaders in the soft drink industry, with Coke being the front runner followed by the PepsiCo Groups and Dr. Pepper/Snapple Group all unique in their own way with a variety of products consumers have been using for nearly 100 years. All three companies born in the southern part of the United States has provided different brands names under different company logos worldwide. Coke has such names in the soft drink industry like Sprite, Minute Made, Fanta, Power Aide, an Simple Orange to name a few of the 3500 plus products they produce worldwide. The largest and closest competitor of Coke is a bit more diverse in the product line with a group of companies under one umbrella, the PepsiCo Group includes 4 other well know companies like Quaker Cereal, Tropicana Juice, Gatorade Sports Drinks, and Frito Lays Snacks. And last of the big three is the Dr. Pepper/Snapple Group. which includes brand names such as 7up, Snapple, Motts, Orange...
Words: 3169 - Pages: 13
...Background Created in 1886 by Dr. John Pemberton, Coca-Cola has gone through many changes, some good and some bad, but in the end has become the worldwide leader in its industry (Graham, 2011). The company boasts a lineup of approximately 500 different drinks, including soft drinks, teas, coffees, juices, and waters. Soft drinks are their “cash cow” with around two billion cans and bottles sold each day (Graham, 2011). The syrup originally was designed as a "cure-all tonic" and contained coca leaves (Davis, 2004). Two years after creating the mixture, and just before he died, Dr. Pemberton sold the rights to the beverage to Asa Candler. Due to increasing demand Joseph Biedenharn started bottling Coca-Cola and bottled distribution of the soda began; within five years large scale bottling operations became available. Throughout the company's history, and even today, it has faced and overcame many challenges. Coca-Cola was, until recently, the world’s most valuable brand (Elliott, 2013), but is still the worldwide leader in the beverage industry. Through all the successes, Coca-Cola has encountered some challenges along the way. Coca-Cola has been criticized for discrimination against minority employees, poor working conditions of migrant workers, and even assassinations of trade union leaders and union-affiliated workers that provoked protests (Raman, 2007). Another emerging issue the company is facing is criticism that their products are contributing to health issues such as...
Words: 5834 - Pages: 24
...class C which included typical workers in the lower middle class and accounted for around 28% of total national consumption of soft drinks. The outcome of a market study conducted by Boston Consulting Group showed that brand awareness was the least significant factor in the beverage purchase decision of Class C. However lower-priced products, also referred to as B brands, played a decisive role and were preferred. Another market study, published by A.C. Nielsen/CBPA study supported the unimportance of brand awareness by highlighting, that between 1998 and 2000, 63% of the market leaders in 157 product categories lost market shares in Brazil. Consequently, Coca Cola was not able to get into the relevant set of the Class C consumers when they were purchasing soda beverages. In this connection also was the unfair competition ensuing from the tubaínas which only could hold its...
Words: 841 - Pages: 4
...Breaking Down the Chain: A Guide to the soft drink industry aCknowleDgments this report was developed to provide a detailed understanding of how the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages in particular. the report was prepared by sierra services, inc., in collaboration with the supply Chain Management Center (sCMC) at rutgers university – newark and new Brunswick. the authors wish to thank kristen Condrat for her outstanding support in all phases of preparing this report, including literature review and identifying source documents, writing, data analysis, editing, and final review. special thanks also goes to susanne Viscarra, who provided copyediting services. Christine fry, Carrie spector, kim Arroyo Williamson, and Ayela Mujeeb of ChangeLab solutions prepared the report for publication. ChangeLab solutions would like to thank roberta friedman of the yale rudd Center for food Policy and obesity for expert review. for questions or comments regarding this report, please contact the supervising professors: Jerome D. Williams, PhD Prudential Chair in Business and research director – the Center for urban entrepreneurship & economic development (Cueed), rutgers Business school – newark and new Brunswick, Management and Global Business department 1 Washington Park – room 1040 newark, nJ 07102 Phone: 973-353-3682...
Words: 40786 - Pages: 164
...States according to Pandrea, Happel, Amedee, Bagby, &ump; Nelson, 2010, and studies show that reducing alcohol consumption can lead to public health improvements such as decreased incidence of “liver cirrhosis, delirium tremens, male suicide, criminality, hospitalizations, alcohol-related disease mortality, workplace injuries, STDs, IPV, rape, robbery, and severe violence towards children” (Jernigan). Public heath deals with many other issues that cause burdens to individuals and society alike such as obesity and gun use. Over the past several months, headlines in the news have been echoing “Chocolate Milk Removed from School Lunches,” and “Senate Considers Federal Tax on Soda.” While the removal of chocolate milk from school menus has actually happened in certain school districts across the country, federal tax on sodas has only been a proposal at this point. However, both echoes resounding through the news originated from escalating research that America’s twin epidemics of diabetes and obesity are due to diets high in sugar. The end result is that the actions taken to fight obesity have not been classified as either effective, uncertain, or harmful consistently through studies and research because there are too many variables like genetics, other sugar-loaded beverages and foods on the shelf, lack of exercise,...
Words: 2430 - Pages: 10
...Water Bottle Deposits a Plus Danielle L. Tippett Baker College of Owosso Water Bottle Deposits a Plus To walk down the streets today, nearly everyone passing by is carrying a water bottle in which they purchased at the store. It seems that the amount of water being sold by stores is increasing. Where are these water bottles being disposed of is the question. Too many of these water bottles are not being disposed of properly since the majority of these are consumed by people away from home (Lockhart,para.3). They are put into trash cans or thrown on the ground as litter. If there was a bottle deposit required on all water bottles purchased then people would be more conscious of their disposal techniques putting a stop to waste created by consuming water. All water bottles need to have a deposit which can be set by each state’s legislature to help reduce landfill waste and littering. One of the many great benefits of having a water bottle deposit is that it will help to control littering on the streets and beaches which in turn is affecting the environment. When there is litter floating along the beach shores a person might not feel so apt to swimming while on their vacation. The empty water bottles that line the streets will make certain neighborhoods less desirable thus bringing down homeowners property values. The local landfills are increasing in size with all the extra water bottles being carelessly thrown into trash cans. It is estimated that about 500,000 water and...
Words: 1912 - Pages: 8
...Marketing Plan [pic] Table of Contents |Executive Summary……………………………………………………………………...... |4 | | | | |Detailed List of Assumptions……………………………………………………………... | | | | | |Situational Analysis……………..…………………………………………………………. | | |Company Performance.…………………………………………………………………. | | |Three Years of History as a Continuing Business..…………………………………….. | | |Market Demand…………………………………………………………………….. | | |Customer Analysis………………………………………………………………….. | | |Competition and Industry…………………………………………………. | | |Market...
Words: 9989 - Pages: 40
